Municipal Commissioner Bhushan Gagrani unveiled the BMC's largest-ever budget for the fiscal year 2025-26, amounting to a staggering Rs. 74,427 crores, along with a surplus of Rs. 60.65 crores on Tuesday. Of this, Rs. 43,162 crores are allocated for capital expenditure, mainly for development projects to improve the city's infrastructure. To further bolster this expansive budget, the BMC has raised funds through Internal Temporary Transfers (ITT) amounting to Rs. 16,699 crores. However, with the upcoming BMC elections, the budget refrains from introducing any new taxes and focusing on advancing the big-ticket projects that are currently underway.
Gagrani presented his first budget, which also marks the third budget under the administration in the absence of an elected body. The budget for the fiscal year 2025-26 reflects a 14.19% increase over the revised allocation of Rs. 65,180.79 crores for the current financial year 2024-25. The BMC has reduced its revenue expenditure from 75% to 42%, curbing costs in salaries and administration. At the same time, it has ramped up infrastructure capital expenditure from 25% to 58%, emphasising urban development and long-term growth through enhanced infrastructure. As of December 2024, the BMC has generated Rs. 28,308 crores in revenue, primarily through compensation in lieu of Octroi, development charges, fees, and property tax.
The major source of revenue is property tax, with revisions long overdue for over a decade. Additionally, an 8% increase in water charges was considered. However, Gagrani clarified that no rise in property or water and sewage taxes has been proposed in this budget. The BMC, however, plans to introduce 'Solid Waste Management User Charges,' as mandated by the SWM rules 2016, notified by the Central Government, for which they are currently seeking legal opinion. Additionally, the civic body has started a survey to assess commercial units in slum areas, from which it expects to generate around Rs. 350 crores in additional revenue. The BMC has also claimed the outstanding dues from various state government departments on account of grant-in-aid, property tax, and other charges that have accumulated to Rs. 9,750.23 crores as of December 2024. .
Vital Urban transport project of BMC
BMC has urged the state government to classify its key projects—such as the Mumbai Coastal Road (South) from Marine Drive to the Bandra-Worli Sea Link, Goregaon-Mulund Link Road (GMLR), Mumbai Coastal Road (North) from Versova to Dahisar, and the Elevated Road from Link Road to Dahisar (West) as vital urban transport projects under the Maharashtra Regional and Town Planning Act, 1986. This move would enable BMC to receive a share of the stamp duty collected from these projects, offering crucial financial support for their development. Additionally, the BMC has demanded a 50% share of both the cess and stamp duty generated from these projects to be allocated to its funds.
Mega Projects with substantial provision
Mumbai Eye Project: In line with the United Kingdom’s iconic London Eye, the BMC has revived the Mumbai Eye project, which was shelved over a decade ago. The proposed project will require 2 to 3 acres of land.
Coastal Road, Goregaon-Mulund Link Road (GMLR), and Sewage Treatment Plant Upgrades: The BMC has allocated Rs. 1,516 crores for the Nariman Point to Worli Coastal Road, Rs. 4,000 crores for the Versova-Dahisar Coastal Road, Rs. 1,958.73 crores for the GMLR, and Rs. 5,545 crores for the Sewage Disposal Project. "By making substantial provisions for these ambitious projects, we have ensured that the work will not stop due to lack of funding," said Gagrani.
Road Concretisation and Water Projects : The BMC has set aside Rs. 3,111.07 crores for the concretisation of roads, with the aim of making the city pothole-free this year. Other major initiatives include the design and construction of a tertiary treated water conveyance tunnel from the Ghatkopar Waste Water Treatment Plant (WWTP) to the Bhandup WWTP, and from Dharavi to Ghatkopar WWTF. Additionally, a water conveyance tunnel from Kasheli to Mulund, along a new water treatment plant with capacity of 2000 million litres per day.
Tiger monument : The BMC plans to construct a Tiger Monument as part of the GMLR project, in collaboration with the state's Forest and Tourism Departments. A suitable location within the tunnel passing underneath Sanjay Gandhi National Park will be identified soon for this purpose.
